NOTES OF THE DAY

Dominion, Volume 26, Issue 186, 4 May 1933, Page 8

NOTES OF THE DAY

Not much surprise would be occasioned if Canada followed the prevailing fashion and devalued her currency or, in other words, raised her rate of exchange. When, four months ago, South Africa reduced the exchange value of her currency, followed closely by New Zealand and Denmark, London seriously discussed the question of how long it would be before Canada followed suit. Then it was expected the American dollar would be devalued. As it turned out New York got in ahead of Montreal. The example of so influential a neighbour must sway Canada. In any case her own exporters, primary and secondary, are clamouring for some such relief. So what the London financial journals feared has come to pass—competition in currency depreciation. Paris reports that Great Britain is using the Exchange Equalisation Account to prevent too rapid a rise in the dollar value of the pound. Perhaps these rather ominous tendencies may provide their own corrective by forcing the nations to come to a stabilisation agreement at the World Economic Conference.

It is amusing to notice that Herr Hitler has adopted the prevailing fashion of announcing a “Plan” for reconstruction. His is a Four-Year Plan. Russia has had a Five-Year Plan, and is about to try out another for a similar period. “Plans” of greater or less duration were talked of in Britain and in the United States. Mr. De Valera also has one for the Free. State, presumably with a republic at the end of it. Our own Labour Party in New Zealand has succumbed to the lure of the blessed word and announced that it has a Three-Year Plan. Since the War we have had “Rationalisation," “Reconstruction,” and “Rehabilitation,” all of which with other platitudinous words and phrases have passed into the abracadabra of politicians ignorant for the most part of their implications. And yet how very little nearer we are to the cure which these high-sounding prescriptions were supposed to promote? Not that there is any objection to planning. But to label a set of proposals as a “plan” does not guarantee their efficacy. Like other things, there are good plans—and bad.

It is reported, but not officially, that the new State of Manchukuo has prepared a new tariff based on reciprocity with Japan, and closing the door to States which have failed to recognise her new status of independence. Mr. Baldwin has indicated that if such should prove to be the case the British Government would be compelled to take action. The question raises once again Japan’s obligations under the Washington Nine-Power Treaty. As one of the signatories she has undertaken to uphold the principle of the open door in China and Manchuria. As the power behind the new State, she is no doubt responsible for the tariff policy in question, and for the disabilities proposed to be placed upon the foreign nations specified. With each development of Japanese policy in Manchuria the tension becomes apparently increased. That policy may be symbolised by a notice posted up at Manchukuo’s front gate: “Beware of the dog.” So far it seems to have been effective.